Bill > HB3117

This bill amends the Illinois Income Tax Act to create a tax deduction for capital gains realized from property taken through eminent domain. Specifically, for both individual and corporate taxpayers, the bill adds a provision allowing taxpayers to subtract an amount equal to the capital gains they realize from eminent domain property takings, to the extent those gains are included in their federal taxable income. The deduction would apply to tax years beginning on or after January 1, 2026 for individuals and on or after January 1, 2024 for corporations. This modification is designed to provide tax relief for property owners whose land is compulsorily acquired by government entities, allowing them to exclude these forced sale gains from their state income tax calculation. The bill is part of a broader set of modifications to the Illinois Income Tax Act, and the eminent domain capital gains deduction is added as a specific subtraction modification in the existing tax code.

Budget and Finance

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=3117&GAID=18&DocTypeID=HB&SessionID=114&GA=104